Watch Out For These Stocks As They Are Showing Signs of Weakness
September 21 2021 | Reading Time: 2 minutes
Nmdc Ltd. Stock
Stock had a huge run in the last one year. It is up more than 69.6% from a year ago as compared to 53.4% for the Nifty500.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Nmdc Ltd. has an excellent EPS Rank of 99, which indicates consistency in earnings. The earnings and sales for the stock have grown by 13% and 19%, respectively over the past three years. Its 3-years earnings stability is 32, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 11%, respectively. The 5-years earnings stability is 26. The return on equity for the last reported year is 22%.
Nmdc Ltd. stock fell -3% this week, undercutting its 40-week moving average. It closed 9.36% below the 40-week moving average. However, the volume for the week remained below its 10-week average.
The large-cap stocks often take support near its 40-week moving average and set up a new base around the line for future move. But such base building may take months, even years. If it is a long term leader, we definitely can give it more room and time to stage a recovery. But, that’s not the case here. Nmdc Ltd. does not meet our long term leader’s trend criteria yet. At this point, we would consider this week’s close as a weakness in the stock.
Alkyl Amines Chemicals Stock
Alkyl Amines Chemicals has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 81. The stock is up 196.4% from a year ago as compared to 53.4% for the Nifty500.
Most recently, the stock broke out of a 6-week, 13% deep Cup With Handle Base 9 weeks ago. However, the stock failed to make a meaningful progress.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
This week, Alkyl Amines Chemicals stock sliced through the 10-week moving average line. The stock closed 6.99% down on 67% higher volume than the 10-week average. The current price is -10.7% below the 10-week moving average.
The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 21.16% above the 40-week moving average.
A closing below the 10-week moving average on heavy volume should be considered as a weakness in a stock, at least for the short to intermediate term. At this point, you should step back and look at your profit cushion on the position. If you do not have enough profit, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can take at least partial profits.
Jk Paper Ltd. Stock
Jk Paper Ltd. has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 79. The stock is up 151.4% from a year ago as compared to 53.4% for the Nifty500.
The stock has had a good run in the last 14 weeks post its breakout from a 13-week, 25% deep Cup With Handle Base. The stock has gained 38% from the ideal buy point of INR 167.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
Jk Paper Ltd. stock fell -3.8% this week, undercutting its 10-week moving average. It closed -6.7% below the 10-week moving average. However, the volume for the week remained below its 10-week average.
The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 31.0% above the 40-week moving average.
The leading stocks often take support near its 10-week moving average. But if a stock closes below the line, that should be considered as an early sign of weakness. Closing below the line on a lower volume is okay, but staying there is not. At this point, you can monitor the stock carefully for signs of further weakness.
Bharat Petroleum Stock
Bharat Petroleum has been a laggard stock for the last one year. It has had a 5.9% move as compared to 53.4% for the Nifty500.
On the earnings front, Bharat Petroleum has a respectable EPS Rank of 70, which is okay but needs improvement. Over the past five years, the earnings and sales for the stock have grown by 5% and 6%, respectively. The 5-years earnings stability is 53. The return on equity for the last reported year is 36%.
The stock sliced through the 40-week moving average line this week. The stock is down -11.2% on 135% higher volume than 10-week average. It closed 6.0% below the 40-week moving average.
When a stock closes below its 40-week moving average, it may take months, even years to stage a recovery. So, a closing below the line should be considered as a weakness in a stock, at least for the intermediate term. If it is a long term leader, we manage it differently. At this point, Bharat Petroleum does not meet our long term leader’s trend criteria. If you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you are sitting on a profit, this is a time to take at least partial profit.
Stock had a huge run in the last one year. It is up more than 69.6% from a year ago as compared to 53.4% for the Nifty500.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
On the earnings front, Nmdc Ltd. has an excellent EPS Rank of 99, which indicates consistency in earnings. The earnings and sales for the stock have grown by 13% and 19%, respectively over the past three years. Its 3-years earnings stability is 32, on a 0 to 99 scale (lower the better). Over the past five years, the earnings and sales for the stock have grown by 19% and 11%, respectively. The 5-years earnings stability is 26. The return on equity for the last reported year is 22%.
Nmdc Ltd. stock fell -3% this week, undercutting its 40-week moving average. It closed 9.36% below the 40-week moving average. However, the volume for the week remained below its 10-week average.
The large-cap stocks often take support near its 40-week moving average and set up a new base around the line for future move. But such base building may take months, even years. If it is a long term leader, we definitely can give it more room and time to stage a recovery. But, that’s not the case here. Nmdc Ltd. does not meet our long term leader’s trend criteria yet. At this point, we would consider this week’s close as a weakness in the stock.
Alkyl Amines Chemicals Stock
Alkyl Amines Chemicals has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 81. The stock is up 196.4% from a year ago as compared to 53.4% for the Nifty500.
Most recently, the stock broke out of a 6-week, 13% deep Cup With Handle Base 9 weeks ago. However, the stock failed to make a meaningful progress.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
This week, Alkyl Amines Chemicals stock sliced through the 10-week moving average line. The stock closed 6.99% down on 67% higher volume than the 10-week average. The current price is -10.7% below the 10-week moving average.
The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 21.16% above the 40-week moving average.
A closing below the 10-week moving average on heavy volume should be considered as a weakness in a stock, at least for the short to intermediate term. At this point, you should step back and look at your profit cushion on the position. If you do not have enough profit, from a risk management standpoint, you may want to cut the position. If you have enough profit, you can take at least partial profits.
Jk Paper Ltd. Stock
Jk Paper Ltd. has been an outperforming stock as compared to the broader market. It has a strong Relative Strength Rating of 79. The stock is up 151.4% from a year ago as compared to 53.4% for the Nifty500.
The stock has had a good run in the last 14 weeks post its breakout from a 13-week, 25% deep Cup With Handle Base. The stock has gained 38% from the ideal buy point of INR 167.
The stock definitely has strong institutional support. It has seen huge institutional accumulation in the most recent quarters. The number of institutional sponsors and shares held by the sponsors, both increased in the last reported quarter.
Jk Paper Ltd. stock fell -3.8% this week, undercutting its 10-week moving average. It closed -6.7% below the 10-week moving average. However, the volume for the week remained below its 10-week average.
The long term support line, 40-week moving average, is still in uptrend. The stock is trading around 31.0% above the 40-week moving average.
The leading stocks often take support near its 10-week moving average. But if a stock closes below the line, that should be considered as an early sign of weakness. Closing below the line on a lower volume is okay, but staying there is not. At this point, you can monitor the stock carefully for signs of further weakness.
Bharat Petroleum Stock
Bharat Petroleum has been a laggard stock for the last one year. It has had a 5.9% move as compared to 53.4% for the Nifty500.
On the earnings front, Bharat Petroleum has a respectable EPS Rank of 70, which is okay but needs improvement. Over the past five years, the earnings and sales for the stock have grown by 5% and 6%, respectively. The 5-years earnings stability is 53. The return on equity for the last reported year is 36%.
The stock sliced through the 40-week moving average line this week. The stock is down -11.2% on 135% higher volume than 10-week average. It closed 6.0% below the 40-week moving average.
When a stock closes below its 40-week moving average, it may take months, even years to stage a recovery. So, a closing below the line should be considered as a weakness in a stock, at least for the intermediate term. If it is a long term leader, we manage it differently. At this point, Bharat Petroleum does not meet our long term leader’s trend criteria. If you do not have enough profit on the position, from a risk management standpoint, you may want to cut the position. If you are sitting on a profit, this is a time to take at least partial profit.
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